• Home
  • Admin/Tech
  • Benefits
  • Buzz
  • DB
  • DC
  • Diversity
  • Investment
  • Law & regulation
  • Risk reduction
  • Events
  • Pensions Library
  • PPTV
  • Newsletters
  • Sign in
  • Events
    • Upcoming events
      event logo
      Defined Contribution Conference 2018

      This exclusive one day conference will provide a comprehensive overview of the evolving DC landscape, and examine how Trustees and Pension Scheme Managers can overcome the challenges they face

      • Date: 25 Apr 2018
      • The Bloomsbury Hotel, 16-22 Great Russell St, London WC1B 3NN, London
      event logo
      Investment Conference 2018

      Professional Pensions Investment Conference has gathered a great following and is a widely respected event which brings together senior decision makers within public and private sector pension schemes.

      • Date: 16 May 2018
      • Grand Connaught Rooms, London
      event logo
      UK Pensions Awards 2018

      Make a date in your diary. These awards are the single largest gathering and a veritable 'who's who' of the corporate pensions industry in the UK.

      • Date: 23 May 2018
      • Hilton Park Lane 22 Park Lane, Mayfair, London W1K 1BE, London
      event logo
      Pensions and Benefits UK 2018

      The very best solutions to pension and employee benefit issues and only discovered when pension’s management, benefits management, finance and HR work together. That's why Pensions and Benefits UK is the industry’s must attend event.

      • Date: 26 Jun 2018
      • The Brewery 52 Chiswell Street London EC1Y 4SD, London
      View all events
      Follow our Professional Pension Events

      Sign up to receive email alerts about our events

      Sign up
  • Pensions Library
    • Latest white papers
      Emerging-market debt: Our outlook for 2018 - and beyond

      Emerging-market (EM) bonds delivered strong returns in 2017, and we think the sector has more potential in 2018. From Sao Paulo to Shanghai, improving economic fundamentals and smarter policies are leading to healthier economies. Even so, global economic and geopolitical risks abound, making it more important than ever for investors to be selective.

      Download
      Ten questions to help trustees to challenge their advisers
      The trustee role can be viewed as similar to that of a non-executive director; they are expected to make decisions on a range of topics. 
      The challenge here is that trustees are unlikely to reach a stage where they are as knowledgeable on every topic as the advisers who are presenting them with recommendations.
      Download
      Find whitepapers
      Search by title or subject area
      View all whitepapers
  • Sign in
    •  

      You are currently accessing ProfessionalPensions via your Enterprise account.

      If you already have an account please use the link below to sign in.

      If you have any problems with your access or would like to request an individual access account please contact our customer service team.

      Phone: +44 (0) 1858 438800

      Email: [email protected]

      • Sign in
     
      • Newsletters
      • Account details
      • Contact support
      • Sign out
     
  • Follow us
    • RSS
    • Twitter
    • Newsletters
  • Register
  • Subscribe
Professional Pensions
Professional Pensions
  • Home
  • Admin/Tech
  • Benefits
  • Buzz
  • DB
  • DC
  • Diversity
  • Investment
  • Law & regulation
  • Risk reduction
  •  

    You are currently accessing ProfessionalPensions via your Enterprise account.

    If you already have an account please use the link below to sign in.

    If you have any problems with your access or would like to request an individual access account please contact our customer service team.

    Phone: +44 (0) 1858 438800

    Email: [email protected]

    • Sign in
 
    • Newsletters
    • Account details
    • Contact support
    • Sign out
 
Professional Pensions
  • United Kingdom

Bill ‘will make annuity market more complex'

  • Archive Archive
  • 02 March 2004
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Google plus  
  • Send to  
0 Comments

UK - The Pensions Bill will overcomplicate the annuity market, experts claim.


The Annuity Bureau says that while the Bill may lead to simplicity before retirement, proposed changes add “unwelcome complexity to prescriptive benefits when pension funds mature”.

Head of marketing David Marlow claimed that adding another layer of limited price investment benefits from 2005 would act as a disincentive to consumers in the annuity market.

He also criticised the Bill’s lack of detail.

Marlow said: “The Pensions Bill does not clarify whether rules prescribing different annuity bases by pension regime type will be scrapped. We don’t know, for example, whether funds accrued in personal pensions from contracting-out – protected rights monies – will be treated the same as funds accrued from employee and employer contributions.”

Marlow also believes legislation governing prescribed benefits is “too restrictive” and will limit the type of annuity policyholders can purchase once their funds mature.

He argued that members who have built up their own pension funds should have the freedom to choose annuities according to individual needs.

“Surely, once people have built up their own pension funds, they should be able to exercise a free choice as to which pension annuities they buy? Most select optional benefits according to their individual needs – why on earth should these extras be chosen for them?”

Winterthur Life pension strategy manager Mike Morrison said the government’s drive for later retirement meant an increase in opportunities for shaping annuities to fit the needs of individual consumers.

He said: “An employee in his or her 60s who chooses to work three days a week may may draw pension benefits to cover the shortfall. This changes the shape of annuities and is likely to increase demand for short-term products.”

Morrison added: “While there has been increased simplicity pre-retirement, the post-retirement market is getting more complex. The focus now needs to shift away from why put money into pensions but what to do with it when you take it out.”

Related articles

  • LDI indices launched to 'improve governance and transparency'
  • BoE's Carney: May rate hike not a done deal
  • We have used 25% lump sum wisely, say four in five freedoms users
  • Treasury rules out review of ditched secondary annuity market
  • DB superfunds will not take off, say over half of respondents
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Google plus  
  • Send to  
  • Topics
  • United Kingdom

Latest stories

LDI indices launched to 'improve governance and transparency'

A suite of liability driven investment (LDI) indices has been launched by STOXX and RiskFirst to aid trustees and consultants select, monitor and challenge managers.

  • Defined Benefit
  • 20 April 2018
A British Airways plane
What is the purpose of a pension scheme?

British Airways and the trustees of one of its pension schemes are set to argue over the purpose of a pension scheme, leading to an impactful judgment for DB pensions. James Phillips explores the issue

  • Law and Regulation
  • 20 April 2018
BoE's Carney: May rate hike not a done deal

Bank of England governor Mark Carney has said there is still a lot of data to consider before the Monetary Policy Committee (MPC) can decide when to next hike interest rates.

  • Investment
  • 20 April 2018
A piggy bank next to piles of coins
We have used 25% lump sum wisely, say four in five freedoms users

Savers are not squandering their tax-free lump sums under Freedom and Choice but are taking a more cautious approach to retirement, according to Prudential research.

  • Defined Contribution
  • 20 April 2018
Back to Top

Most read

A British Airways plane
What is the purpose of a pension scheme?
DB superfunds will not take off, say over half of respondents
A piggy bank next to piles of coins
We have used 25% lump sum wisely, say four in five freedoms users
HM Treasury
Treasury rules out review of ditched secondary annuity market
The High Court
High Court rules no limitation period on recovering pension overpayments
  • Contact Us
  • Marketing solutions
  • About Incisive Media
  • Terms and conditions
  • Privacy and Cookie policy
  • RSS
  • Twitter
  • Newsletters

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017